PEF, CSO want trade pack renegotiated
The Chief Executive Officer of the Private Enterprise Federation (PEF), Nana Osei Bonsu, has urged members of the Economic Community of West African States (ECOWAS) to renegotiate the terms and conditons of the Economic Partnership Agreements (EPAs) with the European Union.
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The renegotiation, he said should ensure that the agreements benefits businesses. on both side of the divide.
He argued that the current terms in the EPA was more favourable to the EU than to local industries in the sub-region hence the need for a renegotiation.
Nana Bonsu was speaking at the GRAPHIC BUSINESS/STANBIC Bank Breakfast meeting series on the theme, “The Economic Partnership Agreement and its implications for businesses in Ghana”.
He said the private sector was not against the signing of the EPA but rather it was pushing for better arrangements and negotiations that would ensure equal opportunities for all.
“Partnership must be a win-win situation, where we all have equal opportunities. We should, therefore, not collapse our local market in return for a market where we can not even compete. Access to a market does not guarantee or create a market,” he said.
EPA not beneficial to Ghana
The Coordinator of the Third World Network (TWN), Dr Yao Graham, also urged the country to step back and look at the agreement again now that it has still not been signed.
He said the terms of the EPA was not beneficial to the country as it would lead to the loss of about 40,000 jobs within 10 years.
He said the EPA would also lead to the collapse of some manufacturing companies, as well as reduce government’s revenue through tariff cuts.
He pointed out that the country’s trade agreements must fit into its development strategy.
“Trade agreements should also be forward looking and be centred on how your economy is evolving,” he noted.
He, however, said what the EPA sought to do was to only protect Ghana’s raw material exports with less emphaisis on finished and semi-finished goods.
No need for further negotiation
The Director for Multilateral Trade at the Ministry of Trade and Industry, Mr Anthony Nyame Baafi, however said there was no need for further negotiation because the country had to sign and ratify before the October 1, deadline.
He said Ghana and its peers had been negotiating with the EU since 2004. During the negotiations, he said the ministry consulted all stakeholders in the private sector and had come up with a document which was aimed at mitigating the risks of the EPA, while enhancing the benefits.
Touching on the loss of revenue, Mr Baafi said the benefits of the EPA far outweighed the revenue that would be lost.
He said revenue for most developing countries came from corporate taxes and not import duties, therefore, as a country, “we should look at expanding businesses in order to get more corporate taxes.